Corporate Credit Rating for PASSUELLO F.LLI SRL (Affirm)

modefinance published the Solicited Corporate Credit Rating of PASSUELLO F.LLI SRL on the website and the rating assigned to the entity is A3- (Affirm). The analysis revealed it is an adequate company with average capability of repaying financial obligations and it is little affected by adverse economic scenarios.

 PASSUELLO F.LLI S.R.L. , based in Calalzo di Cadore (BL), is a family business with a long tradition in the energy sector, operating for several decades as supplier of electricity, diesel, LPG gas, methane, and pellets.

PASSUELLO FRATELLI S.R.L. presents an adequate patrimonial and financial situation. The overall area of solvency remains strong, showing noticeable improvements in both the equity-to-debt capital ratio and leverage levels. From a balance sheet perspective, the company's assets and liabilities are primarily short-term, reflecting the nature of its business, and there is a significant focus on receivables from customers and payables to suppliers. The management of liquidity appears to be effective, and the profitability indicators have improved compared to the previous year, largely due to an increase in operating margins.

As regards the analysis of the Italian Central Credit Register of PASSUELLO FRATELLI SRL, the company does not present any critical issues and no episodes of disputes or financial tension have been noted along any of the credit lines.

The company is rooted in the Passuello family, which has been running a markedly family-run business since its foundation. 

Compared to the peer group, PASSUELLO FRATELLI S.R.L. has a strong positioning in terms of turnover and profitability, while maintaining adequate solvency level. Both profitability and solvency have improved compared to the previous year.
The fundamentals of the energy sector have improved as gas and energy prices have stabilized, and their volatility has decreased from the record highs seen in 2022. However, average prices remain above pre-crisis levels. Fossil fuel prices, which tend to be higher and more volatile than those of renewable and nuclear energy, play a crucial role in determining overall energy prices. It is important to note that following Russia's aggression against Ukraine, Europe addressed its energy demands by significantly increasing LNG imports. In 2023, LNG accounted for 42% of the gas imported by the EU, up from 20% in 2021. While LNG is a more flexible source of energy, it is more susceptible to global market dynamics (increased gas demand in Asia, changes in U.S. shale gas extraction policies, and competition among countries for resources). 

Geopolitical risks represent a potential source of uncertainty for energy prices, particularly since Italy, like much of Europe, relies heavily on foreign imports for natural gas. This dependency can complicate the management of energy supply sources. In the medium term, a key strategy to counter rising prices and reduce reliance on energy imports—thereby benefiting the country's economy—is to accelerate the energy transition process.

In the following table, the addressing factors, actions or events that could lead to an upgrade or a downgrade are summarized:

The present Corporate Credit rating is issued by modefinance under EU Regulation N. 1060/2009 and following amendments.

The present rating is solicited, and based on both private and public information. The rated entity and/or related third parties have provided all private information used. modefinance had access to some accounts and other relevant internal documents of the rated entity and/or related third parties. Solicited and unsolicited ratings issued by modefinance are of comparable quality, as the solicitation status has no effect on methodologies used. More comprehensive information on modefinance Corporate Credit Ratings are available here.

The present Corporate Credit Rating is issued on MORE Methodology 2.0 and Rating Methodology 1.0. A comprehensive description of both methodologies, as well as information on modefinance Rating Scale and Mappings, is available here. For information on historical default rates of modefinance Corporate Credit Ratings please refer to ESMA Central Repository and ESMA European Rating Platform.

modefinance refers to default as a company under bankruptcy, or under liquidation status, or under administration or for which missed payments on a financial obligation are officially recorded.

The quality of the information available on the rated entity and used to determine the present rating was judged by modefinance as satisfactory. Please note that modefinance does not perform any audit activity and is not in a position to guarantee the accuracy of any information used and/or reported in the present document. As such, modefinance can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

The present credit rating was notified to the rated entity in order to identify potential factual errors, as prescribed by the CRA Regulation. No amendments were applied after the notification process.

The rated entity is not a buyer of ancillary services provided by modefinance. The rating action issued by modefinance was performed independently. The analysts, members of the rating team involved in the process, modefinance Srl and its members and shareholders do not have any conflicts of interest in relation to the Rated Entity and/or Related Third Parties. If in the future a potential conflict of interest is identified in relation to the persons reported above, modefinance Ratings will provide the appropriate information and if necessary the rating will be withdrawn.

The present Credit Rating is an opinion of the general creditworthiness that modefinance issues on the rated entity, and should be relied upon to a limited degree. The issued rating is subject to an ongoing monitoring until withdrawal.

Head Analyst – Tommaso Viola
tommaso.viola@modefinance.com

Assistant Analyst – Fabio Politelli

fabio.politelli@modefinance.com

Responsible for Rating Approval – Pinar Dilek
pinar.dilek@modefinance.com